Downtown’s Office Leasing Activity Picks Up Steam
Despite what appeared to be the growing tendency of many in the real estate industry to write-off Downtown’s office market as a lost cause amid the growing “flight to quality” trend, Lower Manhattan’s resilience is beginning to turn the situation around. As the oldest neighborhood in Manhattan, Downtown’s high volume of older office towers that have experienced increased vacancy challenges since the pandemic, has led many to believe the buildings were “destined for dormancy unless they could be converted into housing.” According to reported data provided by S&P Global, the vacancy rate “in the blocks around the World Trade Center” has “fallen to 13% from a “post-pandemic high of 18% a year ago.” Further substantiating the uptick in office leasing activity is the positive net absorption achieved in the third quarter that was reportedly 39% higher than the five-year average — “meaning more tenants are moving in than out.” Lower rent prices have contributed to the improving leasing activity, S&P reportedly citing the newer buildings at the World Trade Center which is now approximately 95% leased, “in part because market rent is a bargain $61 per square foot, though rents are well into triple digits for the top floors.” The 1960-era former Chase Manhattan Plaza at 28 Liberty Street which incurred a 340,000-square-foot vacancy in 2018 upon law firm Milbank Tweed, et. al., relocating to 55 Hudson Yards, has rebounded and vacancy is just 8% now. Office leasing highlights throughout 2025 include the 943,685-square-foot renewal and expansion by Jane Street Capital at Brookfield Place, 250 Vesey Street, the 192,915-square-foot 4-year sublease at One World Trade Center by the Bank of New York (BNY), the 193,497-square-foot lease expansion by fintech global firm Stripe at 28 Liberty Street, and finance firm GFI Group’s128,749-square-foot renewal and expansion deal at 55 Water Street.